Tag: Gas

Hydrogen Debate and the Future of Heat

We are pleased to publish a contribution to the growing debate on the use of Hydrogen to replace north sea gas for domestic heating written by Pete Roche – the article was originally published in the bulletin of Nuclear Free Local Authorities.

An argument about the future use of hydrogen, in particular for heating, has been raging amongst energy professionals and lobbyists since the Government announced it was looking at setting a date by which all boilers on sale would be “hydrogen ready”, meaning they can burn natural gas but can also be converted easily to burning hydrogen. It was also announced that the natural gas supply at Keele University is being blended with 20% hydrogen in a trial that’s of national significance.

Households could soon be required to install a boiler capable of burning hydrogen when they next upgrade their central heating system. The government has already pledged to ban installation of fossil fuel heating systems in new homes from 2025. In November Sajid Javid, the chancellor, visited the headquarters of Worcester Bosch to inspect its prototype hydrogen-ready boiler. The company says the boilers would be available by 2025. They would be £50-£100 more expensive than existing boilers, which typically cost about £900. The benefit over existing boilers is that they can continue burning natural gas but be converted to burning hydrogen in an operation that will cost about £150 and take a gas engineer one hour.

The Department for Business, Energy and Industrial Strategy’s Hy4Heat programme aims to determine the feasibility of hydrogen for heating in homes and includes work with industry to develop prototype hydrogen appliances, including hydrogen ready boilers. About 1.7 million boilers are replaced each year so if they were required to be hydrogen-ready from 2025 most homes would have the necessary boiler by the mid-2030s to allow a switch to hydrogen. (1)

One of the arguments in favour of converting our gas boilers to hydrogen is that we have poorly insulated houses with insufficient space for installing a heat pump. If you were to design a heating policy from scratch, you would not choose hydrogen. You would build well-insulated houses that use electric heat pumps. (2) Worcester Bosch argues that a house needs to have an Energy Performance Certificate rating of C or above for a heat pump to be able to heat the house effectively. According to them of the 3,276,000 UK properties within the EPC band C rating, some 3,223,000 have a condensing boiler. One of the ways of jumping one clear band within the EPC methodology is to replace a non-condensing boiler with a condensing version. This means that many of the properties in band C are really constructed to band D levels of fabric and therefore unsuitable as they stand for a heat pump installation. (3)

Ed Matthew Associate Director at independent climate and energy think tank E3G says hydrogen is the wrong choice for heating homes. Blue hydrogen (manufactured from natural gas) needs CCS so would be massively expensive and keeps us hooked on gas. Green hydrogen (made by electrolysis using renewable electricity) is 4 times less efficient than using heat pumps. “Hydrogen is being pushed by the gas industry. Beware.”

Dave Toke, reader in energy politics at Aberdeen University agrees. He calls it: “the start of one of the greatest pieces of greenwash that have been committed in the UK.” The oil and gas industry is promoting so-called ‘blue hydrogen’, that is hydrogen produced by ‘reforming’ natural gas, and capturing the carbon dioxide that is produced. Yet currently most hydrogen is produced by reforming natural gas and not capturing carbon dioxide, a process that will dramatically increase carbon dioxide emissions if hydrogen is used to heat homes. The efficiency of the gas reformation process is only around 65% meaning that much more carbon dioxide is generated to produce the hydrogen as fuel compared to simply burning the natural gas. He says any claims that the process will be done using carbon capture and storage, beyond that is a few demonstration projects supported by public grants, should be taken with a wagon load of salt.

But even if ‘green’ hydrogen generated by renewable energy were used, it would still be a grossly inefficient way of using that renewable energy. Renewable energy is normally distributed through the electricity system where it can power heat pumps in homes (either individually or through district heating systems) to much greater effect. The heat pumps use electricity much more efficiently compared to any hydrogen boilers, no matter how the hydrogen is produced. Indeed, a heat pump may increase the efficiency of the use of renewable energy by approaching fourfold compared to using ‘green hydrogen’ in a boiler. (4)

Richard Black from the Energy and Climate Intelligence Unit (ECIU) told BBC News: “We will and should have hydrogen in the mix of energy options, but it’s not a wonder solution to everything, which you sometimes get the impression from the rhetoric. There is hope – but too much hype.” (5)

Commentators also argue about the cost with some saying hydrogen will prove too expensive for mass usage, while others say switching to the use of electricity for heating will be far more costly than gas central heating and will put enormous strains on the grid during the winter months. However, heat battery manufacturer, Sunamp, claims that using an air source heat pump on off- peak electricity in conjunction with a heat battery can heat a house for a price comparable with gas central heating.

Lord Deben, chair of the Committee on Climate Change, has expressed confidence that a way will be found to produce hydrogen, which could provide a low carbon substitute for natural gas in heating systems, cheaper than is currently possible. (6)

The Commonweal Common Home Plan (see below) is sceptical about relying on the conversion of the gas grid to hydrogen. And moving to electric heating would roughly increase by a factor of five peak load on the grid which would require significant upgrades to cope. It prefers instead the idea of building district heating networks which can deliver heat from solar thermal, geothermal and industrial waste heat recovery.

New research commissioned by industry body Scottish Renewables shows the Scottish Government’s new Heat Networks Bill could see the equivalent of 460,000 homes – around a fifth of Scotland’s total – heated renewably by 2030, cutting emissions from heat by 10% and helping tackle the climate emergency. The research found 46 potential heat network projects across Scotland’s seven cities. The networks would initially serve 45,000 homes but could, with the right Scottish Government support, grow ten-fold by 2030. (7)

To date the Scottish Government has said the new Heat Networks Bill will “support, facilitate and create controls [for] the development of district heating” – but is yet to confirm the details. In response to this ongoing uncertainty industry has published, alongside the new research, a set of recommendations on how the Bill should support new projects. The potential projects represent a significant economic opportunity. Civil engineering such as the digging of trenches and laying of pipes accounts for 40% of a typical heat network’s costs, often using locally-sourced labour.

Star Renewable Energy, has installed a heat pump which can extract the small amount of heat generated by the Clyde. The river has an average temperature of around 10oC but engineers can boost it up to 80oC for use in homes. (8)

Meanwhile the HyDeploy pilot involving injecting hydrogen into Keele University’s existing natural gas network, which supplies 30 faculty buildings and 100 domestic properties is now operational. (9) And 7 industrial partners have been pledged to support a demonstration project in Denmark, which, with offshore wind as a power source, will produce renewable hydrogen that can be used in road transport. (10)

  1. Times 4th Jan 2020 https://www.thetimes.co.uk/article/hydrogen-boilers-may-be-only-choice-for-homes- by-2025-2rw5t3tpt
  2. Times 4th Jan 2020 https://www.thetimes.co.uk/article/an-exciting-carbon-free-future-depends-on- hydrogen-boilers-6ktqwpgw0
  3. See The Future of Fuel, Worcester Bosch, 2019 https://www.worcester- bosch.co.uk/img/documents/hydrogen/The_Future_of_Fuel.pdf
  4. Dave Toke’s Blog 4th Jan 2020 https://realfeed-intariffs.blogspot.com/2020/01/why-uk-government-may- be-encouraging.html
  5. BBC 2nd Jan 2020 https://www.bbc.co.uk/news/science-environment-50873047
  6. Edie 6th Dec 2019 https://www.edie.net/news/10/Lord-Deben-chides-politicians-for-failing-to-act-on-decarbonisation-of-heat/Scottish Renewables 11th Nov 2019
  7. https://scottishrenewables.createsend.com/campaigns/reports/viewCampaign.aspx
  8. Times 12th Nov 2019 https://www.thetimes.co.uk/article/667e8b5c-04d4-11ea-872c-a98e8bfab8fc
  9. Edie 2nd Jan 2020 https://www.edie.net/news/8/UK-s-first-grid-injected-hydrogen-trials-begin-in-Staffordshire/
  10. Orsted 20th Dec 2019 https://orsted.com/da/Media/Newsroom/News/2019/12/945369984118407

The scale of pressure on domestic gas boiler

The scale of pressure on domestic gas boiler image by Marco Verch CC BY 2.0

 

 

 

 

Update on the November conference

We are really pleased that Simon Pirani will be speaking at the Scot.E3 conference on 16th November.  Simon is the author of ‘Burning Up: A Global History of Fossil Fuel Consumption’ (Pluto, 2018).  Here’s a video of him speaking about the book:

 

Stopping North Sea Oil and Gas Extraction

Scot.E3 public meeting at Kinning Park Complex, 43 Cornwall Street, Glasgow G41 1BA, 7pm Tuesday 24th September.

Ryan Morrison from Friends of the Earth Scotland will speak about Friends of the Earths co-authored report ‘Sea Change’ which shows how a rapid phase out of carbon extraction from the North Sea and investment in renewables could safeguard the livelihoods of those working in the oil and gas sector and create many more jobs. Other speakers include young climate activists and Mike Downham from Scot.E3.  Tickets from Eventbrite.

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Sea Change – a review

In May we welcomed the publication of an important report on North Sea Oil and Gas. Ann Morgan shares her reflections on the report here.

Sea Change: Climate Emergency, Jobs and Managing the Phase Out of UK Oil and Gas Extraction

Introduction

Sea Change highlights the tremendous potential for a just transition and in outlining the scale of the potential increase in new climate jobs provides convincing evidence that trade unions, activists, politicians and economists can utilise in designing a sustainable economy.

Bella Caledonia calls the report a ‘landmark’.  A landmark is defined as a’ turning point’ or a ‘critical point.’ However, as the report is released there are very mixed messages from policy makers.  On the one hand the declaration of climate emergency by the Scottish Government and many local authorities and on the other the Oil and Gas Authority press release on 10thJuly 2019 announcing new licences for exploration and exploitation of hydrocarbons.

The Gas discovery by the Chinese State Owned CNOOC in January this year is said to be the largest in over a decade.  Exxon Mobil and Shell and other oil companies are busy extolling the virtues of Natural Gas, greenwashing thus

‘This versatile and abundant resource is contributing to emissions reductions all over the world’

No word of emissions of methane (research is currently underway to assess methane emission underestimated previously in the North Sea).  As we know methane is a potent greenhouse gas and natural gas is not a ‘bridge’ fuel as the report emphasises.

Just transition

The ScotE3 draft manifesto defines a just transition as

‘One that ensures no individual or community suffers economically or socially as old jobs end and new jobs are created’.

Sea Change makes it clear that a just transition to renewable energy is manifestly possible with the potential that three new climate jobs could be created for every North Sea job at risk. 

Just transition is the way to win hearts and minds and the Sea Change report gives an informed and detailed bridge to that improved working and living environment.  An effective campaign is needed to turn around the Oil and Gas Authority (OAG) insistence on opening up applications for the 32ndround of licensing.

Alternatives

To end fossil fuel dependence and move to the alternative, a clean and safe working and sustainable environment, will not be easy.  However the structured and planned transition that Sea Change describes cannot be ignored.  The report notes that oil and gas was developed with Government support and intervention.  Indeed the big energy companies continue to attract subsidy for their hydrocarbon activities. It argues that it is now high time for intervention and investment to enable a renewable transformation.

Sea Change is an outstanding analysis of the importance of energy at the ‘production’ level and has relevance in the systemic changes required, in public ownership, in governance and accountability and in designing new social models.  The report further illustrates a point also made by Asbjørn Wahl that solutions cannot be made on an environmental/scientific analysis alone.  Action is required to change the power imbalance nationally and internationally.

The need to end extraction

Sea Change documents the current impact of North Sea Oil and Gas and demonstrates in the starkest terms that the continued practice of Maximum Economic Recovery (MER) Is incompatible with the Climate Change Act and emissions reduction.  Mary Church Head of Campaigns at FoE (Scotland) puts it succinctly

‘ Climate Science is clear that we urgently need to phase out fossil fuels, yet the government and big oil companies are doing everything they can to squeeze every drop out of the North Sea … we must ban further exploration and redirect the vast subsidies propping up extraction towards creating decent jobs in a clean energy economy.’

The report finds that:

  • The Uk ‘s 5.7 billion barrels of oil and gas in already operating oil and gas fields will exceed the UK’s share of carbon emissions agreed in the Paris Climate goals. Currently Government and industry aim to extract 20 billion barrels.
  • The additional oil and gas extraction enabled by recent subsidies will add twice as much carbon to the atmosphere as the phase out of coal power saves.
  • Given the right policies, clean industries could create more than three jobs for every North Sea oil job lost.

The authors call for the withdrawal of the OAG authority’s 32ndlicensing round.  They recommend that the UK and Scottish Governments work with affected communities and trade unions in a managed phase out of North Sea oil and gas, investing in education, retraining and reskilling (although it is acknowledged that many existing jobs are highly skilled and transferable) and influencing the priorities of the Scottish National Investment Bank with a significant degree of public ownership. Infrastructure costs can be met with a rapid phase out of oil subsidies underpinned by a fiscal policy of support for clean energy to at least the level to which the oil and gas industry have been supported.

Otherwise the future looks bleak.  The report notes that

  • Offshore oil industry increasingly pressurised (See RMT union’s report on North Sea working conditions)
  • Renewables – currently no significant UK jobs creation with manufacturing jobs going overseas
  • Oil and Gas extraction from newly developed fields would push the world beyond climate limits

In short, the Westminster and HolyroodGovernments face a choice between two pathways to stay in climate limits.

  1. Deferred Collapse: Continue to pursue Maximum Extraction through subsidies until worsening climate impacts force rapid action to cut emissions globally. The UK Oil industry collapses pushing workers out of work in a short space of time.
  2. Managed Transition. Stop approving licensing permits and tax breaks and phase out extraction.

Climate jobs

The report argues that a National Energy Strategy can mean an energy transformation that meets climate commitments while protecting livelihoods and economic well being.  Local manufacturing and workforce participation needs to guide this transformation with new approaches in economic development, strong trade union rights and sectoral bargaining.

‘Clearly it is an ambitious project to transform the UK energy sector within a couple of decades, just as the rapid development of the North Sea was an ambitious project …’

The report models the impact on the oil and gas workforce of ending the development of new fields.  Taking into account the jobs created through decommissioning and forecast retirement in the existing workforce, it estimates that 40,000 existing oil workers (direct and support chain) may need to be in a different job by 2030. To examine the scale of jobs that can be created in compatible clean energy industries and the level of policy ambition necessary, it models the numbers of new jobs that would be created in offshore wind, marine renewables and energy efficiency retrofits, sectors that have strong overlaps with existing oil and gas skills and finds that the number of jobs created will be at least three times more than the number lost.

Social Justice

The report also highlights the international justice commitment to ensure transition is fastest in wealthier countries and end operations, which harm poor communities and workers (Jake Molloy in the RMT report notes the harsh working conditions for Asian migrant workers in decommissioning in the North Sea for as little as around £3 an hour).  Decommissioning should be paid for by oil companies and decommissioning plans should detail and provide for a Just Transition for workers.

Overall, Just Transition plans, guided by climate limits, should provide structured pathways for the existing workforce, new workers and communities.  Terms and conditions of workers must be safeguarded and accountability to trade unions and local stakeholders in place.

Finally, the authors report that in other policy arenas restrictions on the supply of harmful substances (e.g. ozone depleting chemicals and asbestos) targeted the substances, whereas with fossil fuels only measures to slow the consumption have been taken leaving the market to determine extraction.  This is beginning to change.  It is to be hoped the banning of fracking in Scotland and UK wide in future will serve as an example of legislative measures to make unsafe practices unlawful.

It is worth noting that the authors place no great faith in carbon negative strategies such as capture and storage.  While these technologies may have their place in future developments, philosophy of enabling business as usual must be guarded against.  To finish with the words of the authors

‘Oil and Gas sucks investment …’

Investment in renewables could swiftly move us to reduction in emissions within climate limits.

‘Today’s decisions shape the long term energy future’.

Let’s begin the sustainable revolution.

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Sea Change

This week has seen the publication of an important report on North Sea oil and gas.  ‘Sea Change – climate emergency, jobs and managing the phase-out of UK oil and gas extraction’.  The report is co-published by Platform, Oil Change International and Friends of the Earth Scotland. It finds that

  • The UK’s 5.7 billion barrels of oil and gas in already-operating oil and gas fields will exceed the UK’s share in relation to Paris climate goals – whereas industry and government aim to extract 20 billion barrels;
  • Recent subsidies for oil and gas extraction will add twice as much carbon to the atmosphere as the phase-out of coal power saves;
  • Given the right policies, job creation in clean energy industries will exceed affected oil and gas jobs more than threefold.

Recommendations to the UK and Scottish Governments include:

  • Stop issuing licenses and permits for new oil and gas exploration and development, and revoke undeveloped licenses;
  • Rapidly phase out all subsidies for oil and gas extraction, including tax breaks, and redirect them to fund a Just Transition;
  • Enable rapid building of the clean energy industry through fiscal and policy support to at least the extent they have provided to the oil industry, including inward investment in affected regions and communities;
  • Open formal consultations with trade unions to develop and implement a Just Transition strategy for oil-dependent regions and communities.

We hope to publish a longer review of the report in the near future.  However, in the meantime we strongly recommend downloading, reading and sharing the PDF.

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BiFab shows prospects and pitfalls facing a new age of renewable energy

The second SCOT.E3 bulletin looks at BiFab, renewables and the prospects for moving towards secure employment in the fabrication sector.  You can download the bulletin (2 sides A4) here.  Or contact us to order hard copies.  The image shows page 1 of the briefing.

Briefing 2